NRI residents have always looked to invest in Indian real estate, whether it is to revive their roots or just expand their fortunes. The domestic property market has experienced a steady cash flow from abroad. Statistics show that the total investment in 2014 was around 5 billion USD and by 2018, investments clocked in at over 10 billion, marking a 200% growth rate.
If this was not miraculous enough, experts are claiming that the number could boom as high 180 billion USD by 2020.
It is no secret that as far as NRI investment in the Indian real estate market is concerned, things are looking up. But what caused this exponential growth?
In 2017, the full-scale implementation of the Real Estate (Regulation and Development) Act was one of the major reasons for the growing trust of NRIs. In fact, the ratio of NRI investment on ready-to-move properties v. under-construction properties has now increased from its 67:33 to a healthier 56:44.
But why is this happening? How has RERA registration helped builders attract NRI homebuyers? Let’s take a look:
RERA has been successful in instilling the long lost trust and security factor that NRIs harbored for the Indian real estate industry. With decades of unorganized transactions and high levels of corruption, people of Indian origin had become wary of real estate investments in their homeland.
However, RERA’s organization and buyer protection have encouraged them once more to buy real estate!
RERA has also made the legal aspect of home owning easier for NRIs. Earlier, in case of shady promises made by the developer, the process of getting justice done was rather tedious; more for someone not living in the country.
However, with RERA and the setup of appellate tribunals, things have become less hassle. In fact, within two years of its implementation, the legislation has already addressed a few landmark cases against developer duplicity!
The unorganized pre-RERA real estate industry was unnerving for NRIs because of its lack of credibility. With the RERA registration in place however, things have changed for Indians living abroad.
They are now protected by safeguards of the legislation and can reasonably trust any RERA registered project!
All of these factors have significantly helped developers attract more NRI homebuyers. In fact, these advantages have opened up another aspect of real estate marketing and sales; one that developers are not making the best of.
With a trustworthy real estate environment for NRIs, developers can now gain their confidence through loyalty programs and boost high-quality lead generation with referrals. This will streamline a vastly unexplored channel of unit sales and boost their growth organically!
To know more about referral sales for your real estate projects, visit Loyalie now!